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The averages continued to melt upwards during the afternoon session and pushing the DOW into triple digits. The small caps, NASDAQ was over +one percent while the $RUT just couldn't get the steam to play with the other averages and that is worrisome.

By 4 pm the volume remained low to anemic and looking tired. Several things could happen tomorrow.

Follow up:

If the $NYMO continues to be oversold we are sure to see a rise in the equities even though the very short term indicators indicate bearishness. On the other hand we might see another so-so day before descending, which is what I think the averages need to do.

I would love to see another 4% dip, recovery and proceed back up. That is what the medium indicators are showing. The problem with this analysis, is that this market has not done anything it was supposed to do for the last 5 years and I really don't expect it change now.

The medium term indicators are leaning towards the hold side at the close and the short-term market direction meter is heavilybullish. We remain mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned significantly and that is not enough for me to start shorting, but now I am getting very concerned. The SP500 MACD has turned down, but remains above zero at +5.60. I would advise caution in taking any position during this uncertain period although some technical indicators have starting to turn bearish.

Investing.com members' sentiments are 72 %Bearish and it seems to be a good sign for being bullish. The 'Sheeples' always seem to get it wrong.

Investors Intelligence sets the breath at 57.0% bullish with the status at BearConfirmed. (Chart Here)

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 61.47. (Chart Here) In support zone and testing.

Chris Ciovacco says, "As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy." This chart clearly shows that dropping below 65.50 should be of a great concern to bullish investors. Wednesday, 9-3-2014, XLY edged up to 69.25 and was a signal that we might have another reversal as were are witnessing.

The US dollar is trading between 85.22 and 84.70 and is currently trading up at 85.15, the bias is currently sideways and quiet. (Chart Here) Resistance made in Aug., 2013 has been broken.

The markets are still susceptible to climbing on 'Bernankellen' vapor, use caution!

"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation inequities, they should try to be fearful when others are greedy and greedy only when others are fearful." - Warren Buffett

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